Private Motor Carrier Dec 2013 by Annex Business Media

T H E P R I VAT E T R U C K F L E E T M A G A Z I N E

December 2013 â&#x20AC;˘ issue 4

MOTOR CARRIER

SPACE FOR RENT

EMBRACE A FOR-HIRE MINDSET TO OFFSET THE PRICE OF YOUR PRIVATE FLEET

Get the Most from a Lease

Dear Minister

Safety First

The best leases consider

Our wish list to improve the

Praxair, Tim Hortons and Hensall

more than payments alone

business of private trucking

collect private fleet safety awards

pg 16

pg 23

pg 29

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16 FEATURES

5 Editor’s view

Space for Rent Embrace a for-hire mindset to offset the price of your private fleet.

7 President’s report

Get the Most from Your Lease

7 Chairman’s message

Decisions about the best vehicle leases involve more than payment schedules.

38 Stats and facts

31 In the headlines The latest news from the business of trucking.

33 New products Electronic tools from Navistar and Detroit, automated ProStars, Volvo efficiency, a Cummins V8 and more.

Dear Minister Our wish list to improve the business of private trucking.

Safety First Praxair, Tim Hortons and Hensall collect private fleet safety awards.

23 20

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“

Too many truck drivers look like me, and that’s a problem

The average

driver is male (check), about 46 (check two) and decidedly pale

”

(check three).

John G. Smith EDITOR

It appears I’m more like a professional truck driver than I ever realized. Sure, when sharing the highway with a truck I can’t help but make a mental note of the configuration. Discussions about transportation tend to creep into social settings, and I even have a personal collection of toy vehicles, trucker hats and a Ford Aeromax belt buckle. Spend more than 18 years writing about the trucking industry and this will happen to you. But take a close look at the picture to the left. The average driver is male (check), about 46 (check again) and decidedly pale (check three). These are disturbing observations, and not just because of my occasional habit of grinding gears – proving the theory that those who can, do, and those who can’t, write about those who do. Recently released National Household Survey data found that truckers are older than the typical workers in other industries. Fleets are lagging behind in the race for a new generation of employees to replace retiring Baby Boomers. Digging a little deeper into the data, a mere 13% of truck drivers identify as visible minorities, compared to the 18% seen across Canada’s increasingly multicultural workplace. Put another way, fleet recruiters are trailing their counterparts in other industries when reaching out to groups which account for the net growth in Canada’s workforce. In the September edition of Private Motor Carrier, I wrote how productivity gains in the form of larger trucks will be part of the answer to Canada’s ever-increasing driver shortage. While that is still true, it is only the beginning. Private and for-hire fleets alike need to do a better job of attracting future employees, reaching out to a new generation of candidates and reflecting the growing number of new Canadians. This means taking a hard look at long-term recruiting strategies, retention programs, and outreach programs to tap into under-represented groups. It’s why the call for ongoing help to tackle the driver shortage is one of the top needs identified through the wish list in our Dear Minister feature, found on page 23. There is no single answer to challenges like these. No magic bullet. But we need to accept the changes that are coming, and recognize that changes need to be made. The alternative involves sticking with too many truck drivers who look like me. That can’t be good for the industry.

John G. Smith, Editor Twitter: @wordsmithmedia

EDITOR John G. Smith 905-686-4851

wordsmithmedia@rogers.com Twitter: @wordsmithmedia

EDITORIAL DIRECTOR PRESIDENT, PMTC Bruce Richards 905-827-0587 trucks@pmtc.ca

PUBLISHER Jack Meli 647-823-2300

jmeli@bizinfogroup.ca

PRODUCTION MANAGER Steve Hofmann shofmann@bizinfogroup.ca

ART DIRECTOR Lisa Zambri CIRCULATION MANAGER Mary Garufi 416-442-5600 ex 3545 mgarufi@bizinfogroup.ca

VICE PRESIDENT PUBLISHING Alex Papanou PRESIDENT Bruce Creighton

Private Motor Carrier magazine is produced under contract by BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd., a leading Canadian information company with interests in daily and community newspapers and business-tobusiness information services. Editorial services and content supplied by WordSmith Media Inc.

The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner, the Private Motor Truck Council of Canada. Nor may any part of this publication be stored in a retrieval system of any nature without prior written consent. ISSN 2291-3998 (Print) ISSN 2291-4005 (Online)

Return Undeliverable Canadian Addresses to: Circulation Department – Private Motor Carrier magazine 80 Valleybrook Drive, Toronto, Ont M3B-2S9 Subscription Inquiries – 416-442-5600 The content of this magazine should be viewed for information purposes only, and should not be seen as an alternative to legal advice.

T H E P R I VAT E T R U C K F L E E T M A G A Z I N E

MOTOR CARRIER

May 2013 • issue 1

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T H E P O W E R T O S I M P L I F Y.

PRIVATE MOTOR TRUCK COUNCIL OF CANADA

The debate around entry-level training is not cut and dry

PMTC

Magazine reflects the interests of private fleets

“

IT SEEMS TO BE COMMON SENSE to suggest that new drivers need some level of formal training to establish the skills and knowledge required for their chosen jobs, but the debates around such issues are never quite as cut and dry as they appear. We recently saw an example of this when the U.S. Federal Motor Carrier Safety Administration quietly withdrew a proposal to establish new entry-level training standards for those applying for a Commercial Driver’s Licence. The debate is no easier on this side of the border. Carriers would like to be confident that any newly licensed driver has attained a particular level of skill and knowledge, supporting hiring decisions. But they also need to ask how much mandated entry-level training would cost, and how it would influence wages. The general public wants to be confident that they are in safe company when sharing the road with truck drivers, who are already among the safest drivers around. But then they will need to ask whether added training for the small percentage of entry-level drivers will make highways that much safer. Would-be drivers, as a matter of consumer protection, should themselves be able to see if any chosen training options meet some level of industry expectations. But just how much are they willing to pay in the way of tuition and time? Even training schools may not be as eager to embrace a proposal for entry-level training once they consider the standards that would be established and enforced by a third party. These represent just a few of the barriers on a journey towards something that looks like common sense. Maybe we should begin with a focus on two overriding questions: What does the industry really want in the way of entry-level training, and what is it willing to pay for? Bruce Richards, President

”

Bruce Richards PRESIDENT

Dennis Shantz CHAIRMAN

PRIVATE MOTOR CARRIER has quickly established itself as the magazine for the private trucking professional. We’ve done this by focusing our editorial on the issues specific to private trucking — the largest sector of the trucking community. And with a circulation of more than 19,000, we know we are reaching that community. This edition offers yet another fine example of how our editorial content targets the interests of private fleet operators. We are pleased to welcome Michael Fox of CIT as a guest columnist, with his piece entitled Financing Facts. Michael has provided an interesting look at some of the available options and some challenges that need to be addressed when considering financing alternatives. He also offers a primer on loans versus leases; finance leasing versus full-service leasing; and some of the tax implications to be considered. In the article entitled Space for Rent, we look at one very successful private fleet that turned its empty miles into profitable ones. And we hear some of the trucking industry’s better-known suppliers offer their insight into how their products can help move the strictly private carrier into a revenue-generating machine. Of course it’s not all gravy, so you’ll also read some cautionary notes that will help you decide whether for-hire activity suits your operations. In Getting the Most from Your Lease, we hear from several industry experts who discuss the different types of lease arrangements, and the reasons why one arrangement may suit your operations better than another. The article offers insights that make it well worth a read. So, wherever you are reading Private Motor Carrier this month, whether in hard copy or online, I know you will find the articles interesting, and I encourage you to share them with your colleagues. Dennis Shantz, Chair

December 2013

”

PMC • 7

SPACE by John G. Smith

here was a time when the Ippolito Group relied on other businesses to haul its loads of fruit and vegetables. But in 1996 it established a private fleet in the form of Ippolito Transportation. Trucks, trailers and their drivers became rolling brand ambassadors; the control over shipments increased; transportation costs began to drop.

8 • PMC

December 2013

FOR RENT

Then the revenue began to grow. At first, the fleet based in Burlington, Ontario began to haul the occasional load of produce for similar vendors who were shipping to the same pool of Canadian grocers. Retailers began booking their own space on the trailers, and then other customers emerged. Today, Ippolito’s sister companies account for a mere 25% of the

Embrace a for-hire mindset to offset the price of your private fleet

freight. A traditional cost is now a source of revenue. “We’re not in the business just to remain revenue-neutral,” stresses Derek Comfort, vice-president of transportation. “We’re in the business to turn a profit, and we do.” The concept of a private fleet as a profit centre may be foreign to some managers, but a for-hire mindset can offer a way to

offset the rising costs of fuel, equipment and maintenance. This is especially true when focusing on trailers which tend to be empty for part of their journeys. Diesel will burn, tires will wear, and drivers will be paid whether there is any freight on board or not. “Private fleets are realizing that there is an open market for them to cut down their

transportation costs, and there are a variety of ways to approach that,” says Joel Beardsley, business development manager for Private Fleet Backhaul, which books freight for about 400 dedicated and private fleets. “By developing a backhaul program, by developing backhaul lanes where they have a heavy saturation of capacity, they’re cutting transportation costs -- and that

makes their company as a whole more successful.” Even sustainability plans are supported. Fully utilized equipment reduces the number of tractor-trailers running up and down the highway. “Transportation doesn’t necessarily always have to be a cost,” agrees Brad Young, director of product marketing for TMW Suite, a fleet software platform from TMW Systems. In cases like Ippolito, the added revenue can even give birth to a whole revenue-generating business division. Searching load boards or finding partners to fill the occasional backhaul is hardly a new approach to the business of private trucking, but the fleets which want to pursue the opportunities in a broader way have other issues to consider. “Integrating the planning and execution of private fleet and for-hire raises some interesting challenges,” concludes Descartes Systems Group, in a recent white paper entitled Bringing Together Private Fleet and For-Hire Transportation Yields Improved Operational Results. “While the objective is usually to provide the lowest cost of delivery, success demands that integration must encompass delivery training needs, equipment, special services, etc.” The requirements for pricing, planning and executing the assets involve different information and business processes. “When addressing effective private fleet operations, managers must consider such elements as asset utilization, driver and vehicle availability, driver skills, driver performance management and pay considerations. They must also take into account compliance issues such as Hours of Service, vehicle inspections and fuel tax reporting,” the authors added. “These are all significant factors in the planning and execution process.” It explains why some of a private fleet’s early wins tend to focus on existing delivery lanes and familiar business partners. Of course, the business does not fall from the sky. “It might be as simple as utilizing load board services to find those backhauls. It might simply be salespeople who were selling services for one division now offering a transportation component

December 2013

PMC • 9

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space for rent,

continued from page 9

Ippolito Transportation’s sister companies now account for a mere 25% of the fleet’s freight.

to new customers,” Young says. “I don’t want to say it’s easy to do that, but it certainly can be done.” Jamie Williams, president of PeopleNet Canada — which provides onboard computing and fleet communications — suggests many private fleets find additional freight by working with the same for-hire fleets that are sometimes used to address capacity shortages. “It’s a benefit to the for-hire carrier because they are not giving up that freight, essentially, to a competitor.” One of the biggest challenges after accepting additional freight will come in the form of scheduling. The advantages of having a private fleet in the first place cannot be sacrificed in the name of a few extra dollars. “I might take a head-haul lane out to one of my facilities, and there might be a perfect backhaul, but it might cause me to lay over for the evening when I really need that trailer back at the [Distribution Centre],” Young adds. “Sometimes they don’t have the ability or the luxury to wait.” To Beardsley, the best backhaul opportunities for linehaul operations balance schedules and distances alike, with the new freight picked up within 40 kilometres of where the original freight was unloaded. “Oftentimes, because of Hours of Service [limits], drivers can’t afford to sit and live load and live unload. Now you have to look at whether you can drop and hook.” “That same level of intensity, focus, service, and performance has to be there as well, in addition to making sure their operating team and their drivers are taking care of their own freight, and that takes time,” he adds. Those who want to chase more of the freight may also need to add to the size of the fleet. “Instead of sacrificing a sister division, we would expand our fleet, expand our warehouses,” Ippolito’s Comfort says. The added resources are not limited to trucks and trailers, either. Today’s for-hire customers demand more data about their shipments than ever before, he explains. His company’s TMW software platform and GPS tracking capabilities from Shaw Tracking deliver that. Young, meanwhile, refers to the need to add customer service people, as well as the systems which offer customers access to the data. A private fleet with activities tightly integrated in an internal Warehouse Management System may suddenly face customers who want to transfer data over an Electronic Data Interchange.

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In fact, every new customer can present unique demands, particularly as different types of freight are picked up. “If you’re hauling beer, then you’re already set up to haul beer. You know what the expectations are, you know what your customer’s expecting,” says Mike Ham, vice-president of Shaw Tracking. “Now all of a sudden, you’re hauling frozen meat, you’re hauling orange juice, you’re hauling produce, you’re hauling liquids to a variety of different customers, and every customer is different.” Scheduling needs can represent the biggest differences of all. “They may be very sensitive to when you’re in their yard and when you’re out of their yard,” he says. If the timing is wrong, the fleet could face an unwanted accessorial charge.

We’re in the business to turn a profit, and we do Derek Comfort, Ippolito Transportation

”

A private fleet’s internal customers tend to be more flexible when discussing delivery windows, Comfort says. Questions can often be answered with little more than a quick visit to the office next door. In contrast, for-hire customers are more likely to present specific pick-up and delivery times, complete with the non-compliance fines for any missed delivery window. “It changes the sense of urgency, the mindset of how you use the tools, and how you manage those assets and those relationships,” Ham says. “That’s a different matrix and a different set of expectations; it’s a different animal in terms of how they demand information. Shippers and customs brokers want more documentation. They want cross-border information in advance.” That might require new scanning and printing tools in a fleet’s truck cabs. Every gain will require more transparency, allowing evermore people to tap into the data. “The technology is getting superior by the day now from a route-management standpoint. Not only does dispatch and operations and management know what’s going on with the workflow, but the customer knows,” says Williams. Above all, it’s a different way of looking at the business. “It’s a cultural change from where people say, ‘We’re at the back of the building and we facilitate delivering widgets from off the assembly line,’” Ham says. “It becomes, ‘We’re across North America with deadhead miles and empty space. Let’s fill them.’” That can be a challenge for existing staff. Those who have only served internal clients or worked with one type of freight may struggle with new demands and procedures from external customers. To Williams, part of the solution comes in the form of in-cab navigation and compliance tools. “With that new piece of business, the order will come directly from dispatch or from the private fleet in an automated format, and it will tell a driver what he has to do, where he has to go, how he has to get there, what he

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space for rent,

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“It takes a long time to build up revenues and fleet size,” says Derek Comfort of Ippolito Transportation.

has to pick up, and if there’s any special notes that have to be addressed when he does the pickup. That’s all sent to him directly. He’s not writing things down. He’s not pulling over to the side of the road to check a map on where he’s got to go. He’s not trying to figure out what time he can be there, what time he can pick up. All that’s automated.” The systems also need to track whether

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them a clear understanding of what they’re going to be handling,” Beardsley says. “You can do all the planning and matchmaking you want, but it will come down to whether that driver will be successful, so you want to give him the tools. You want to give him good instructions that are clean and easy to follow.” And the profits do not begin to flow overnight. “It takes a long time to build up revenues and fleet size,” Comfort says. As a relatively young fleet, Ippolito still needs to overcome misconceptions that it only hauls its own produce. “We can do so much more than that.” A long-term view may bring the most value of all. Unlike the occasional shipment picked off a load board, the right customer can offer a lasting solution to underutilized equipment in a specific lane, Beardsley says. Systems and drivers can then be optimized for the repeat business. “The easier and more consistent and more familiar you make something,” he pMC says, “the better it is.”

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GET THE MOST FROM YOUR

lease

John G. Smith

Decisions about the best vehicle leases involve more than payment schedules

rivate fleets have been known to choose vehicle leases over outright purchases for several reasons. Financial teams might focus on the promise of predictable monthly payments that can be written off in their entirety, without straining debt-toequity ratios. Operations teams may be attracted by a low-risk way to expand or reduce equipment counts based on seasonal demands. Mario Marin, major account sales executive at Brossard Leasing, thinks the promise of predictable maintenance costs may be the most enticing factor of all. Maintenance needs will vary over the life of any truck. Costs tend to be relatively low in the first two years of a vehicle’s service, rise in the third year, drop in the fourth and then spike in the fifth year as individual components need to be replaced. This can be difficult to explain to a company’s senior financial officer who has limited experience with mobile equipment. And experienced fleet managers who oversee a limited number of assets face their own challenges when trying to predict future maintenance expenses. “With a full-service lease, if you can tell me how much mileage you’re doing on an annual basis, I can pretty much print a budget for the next five years on what your costs will be,” Marin says. The option can be a particularly welcome fit for a private fleet. “When you

16 • PMC

December 2013

look at a private fleet, their core competency may be brewing beer or distributing steel. It’s not trucking and truck maintenance and the procurement of rolling assets,” says Chris Fairey, Ryder Canada’s vice-president of business development. “When you look at the costs of trucks with the new [emissions] technology, and when you look at what it takes from an operational perspective, the new technology is complex. It requires more tooling, more expertise, more road service support.” “Even the large fleets can’t keep up,” agrees Tim Derrough, vice-president and general manager at Altruck International. The perfect lease As valuable as predictable payments can be, fleet managers need to consider several factors when looking to structure a perfect lease. Something as fundamental as monthly payments will vary depending on the leasing company’s own purchasing power, Marin says. Equipment choices also differ, since some providers are married to specific nameplates. Still other operations may offer better deals to fleets that are able to accept pre-defined equipment spec’s. The leases don’t even need to rely on new equipment. Fleets which limit their trips within the Greater Toronto Area do not need a brand new trailer, explains Jason Ciciretto,

vice-president of GTA Trailer Rentals. “They’re looking for a cartage-type trailer which is typically in the vintage of ’99 to 2002. There’s also a storage cartage need, where trailers typically get loaded for peaks in demand. [Fleets] store them, and they don’t do a lot of miles over the road.” Best of all, an older van trailer can be secured at a lower price than its newer counterpart. Meanwhile, fleets which traditionally buy their trailers may turn to a lease when trying to address a short-term surge in freight. “In the short term, it makes no sense to buy,” Ciciretto says. “It comes down to the customer. Is the demand something we’re going to continue to see? Is it short-lived?” A fleet that decides to

Something as fundamental as monthly payments will vary depending on the leasing company’s purchasing power. Equipment choices also differ, since some providers are married to specific nameplates.

lease a trailer in this scenario may want to maintain the option of returning the equipment with relatively short notice, extending the agreement for a longer term or even converting the deal to a lease-to-own model, essentially capitalizing the asset. (He calls the latter option a providing-your-cake-and-eatingit-too lease.) Some private fleets address seasonal business cycles by leasing their trucks for only part of the year and then turning the equipment over to another user, adds Bob Hotton, national sales manager for Maxim Truck and Trailer’s leasing division. “I have clients that lease trucks 10 months of the year, and the other two

months of the year they don’t need them.” Equipment which sits unused in the summertime might meet a moving company’s seasonal needs. In other cases, the units could simply be fed into a broader rental fleet, supporting other fleets that are trying to address their own peaks in seasonal demands. “Ultimately, the general consensus is that fleets are still fairly conservative in terms of making a large capital expenditure. Leasing allows them to address their fleet requirements and still insulate them from risk,” Ciciretto says. A healthier economy is having its own influence on the deals. “We’re seeing some players that are willing to serve longer-term

leases, where two to three years ago you would not see that. No one would consider signing a 12-month or longer lease,” he says. “Now we’re seeing that come back.” Varying support Of course, finding the equipment is merely the beginning. Under a full-service lease, something as basic as the maintenance network’s hours and locations will determine whether technicians are available when and where they are needed. While one fleet will require support around the clock, another may be able to accept limited hours. Even a fleet with its own maintenance facilities can require added

December 2013

PMC • 17

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support along specific routes or closer to shipping destinations. The infrastructure behind the promised level of service will make a difference of its own. Two leasing providers may offer onsite repairs, but one of them may have 10 times as many service trucks, Marin explains. Even the type of service vehicle can make a difference. “We have 12 of them working on three shifts, and they’re not pickups,” he says. “They’re real service trucks worth $50,000 apiece plus all the equipment that goes in them.” It can be the difference between a roadside repair and towing something back to the shop. The after-hours support varies widely, too. While one company answers calls with a live person, another requires stranded drivers to leave a message. For its part, Idealnet requires phones to be answered in three rings, maintenance teams to be dispatched in 30 minutes, preliminary diagnostics to be completed in 30 minutes, and repairs to start within 30 minutes after a repair is authorized. Equipment delivery demands can make a difference as well. Some leasing companies require customers to arrange moves to a shop. Others offer the service at an added cost for every pickup and delivery. Depending on schedules and travel distances, a day in the shop could suddenly extend into three days without a truck, requiring a replacement unit. And a quick replacement for a reefer will be particularly important to a fleet that ships temperature-controlled freight, Ciciretto observes. The power of information The level of support does not end there. Fleets which lease their equipment also have the chance to maximize the data collected through telematics, which can monitor everything from vehicle locations to measures such as idle time, fuel economy and hard-braking events, Fairey says. But compiling the data is just the beginning. A fleet with its own trucks could still do that internally. The real value emerges when a leasing company can compare a customer’s experience to the benchmarks established by similar operations. Think of it as a shift from an

internal report card to one which grades performance against the industry at large. It is not the only way that information can be a powerful thing. The maintenance teams which support a full-service lease will certainly need ongoing training to keep up with changing equipment such as emission controls or a shift from drum brakes to disc designs. Derrough adds that some leasing companies can provide support for operations teams in the form of regular driver meetings to discuss safety and compliance, or answer questions about regulations such as those which govern border crossings. This extra help will be particularly important to private fleets overseen by controllers or general managers who have limited exposure to the business of trucking, he says. “We build relationships with people and try to be a business partner.” “Make sure all the services you were promised are written in there clearly,” Marin adds. “Sometimes there’s a lot of pushing: ‘Oh, yeah, yeah, yeah, we’ll do it.’” Above all, one of the best indications of future service will come in the form of references from existing customers. It’s why Hotton is surprised that many fleets seldom ask for the names. End game As important as acquiring the equipment will be, there may be a time when it has to be returned, and some leases are easier to cancel than others. A wide open-ended lease, typically designed for a short term, allows for the equipment to be returned at any time. Term leases, running for one to 10 years, will include different terms and conditions. GTA Trailers, for example, will typically charge three months of interest to carry the returned asset, but will waive the fee if it can find another customer to lease the equipment. “Say something isn’t working out or they have a unit too many,” Hotton says. “There are cancellation clauses. There are circumstances where maybe they are heavy one unit. How do we take it back? What do we do? What does that look like if there’s a slowdown in their business or a loss of drivers?”

“

With a full-service lease, if you can tell me how much mileage you’re doing on an annual basis, I can pretty much print a budget for the next five years on what your costs will be. Mario Marin, Brossard Leasing

”

Agreements can typically be concluded on an anniversary date with 30 or 60 days of prior written notice. “What would you do if I had to bring back a unit?” Hotton asks, referring to important factors to discuss. “A lot of sales guys don’t like to answer that question.” A highly specialized unit with a crane may also face different rules than equipment that can be easily absorbed in a broad rental fleet. As varied as the options are, there may be another important change to come. Today, full-service lease agreements are treated like operating leases on a company’s balance sheet. There is a move to change the way international accounting rules look at the deals. “They want them to become capital leases instead of a footnote on your balance sheet, where an operating lease is today,” Hotton says. “If the term happened to be over five years, the tax and accounting people are looking to change that law so it would virtually become a capital lease. That changes the game a little bit because now you’ll have to use the depreciation rule instead of 100% tax write-off.” Even if that happens, Fairey stresses that several other leasing advantages remain. The value of ongoing maintenance support and expertise cannot be denied. “Our business is to understand [a fleet’s] application, understand their business, and then look at the best way to add value and create pMC something that works for them.”

December 2013

PMC • 19

financing by Michael Fox, CIT

FACTS

More lenders want to finance your equipment, but do they really understand your needs?

leet managers who are looking for signs of improving business conditions would do well to notice all the lenders who suddenly want to “make nice” with private motor carriers. It wasn’t so long ago that some financial institutions didn’t want anything to do with transportation companies. Now, all of a sudden, they’re banging on everyone’s door. What gives? Well, a couple of factors. First, lenders in Canada and the U.S. are in a feeding frenzy for assets. They held onto cash through the Great Recession, but low rates limited their financial returns. Today they are looking to finance

new or different assets, especially now that insurance companies and pension funds are entering the financing fray. Second, lenders understand that many fleet managers were equally as cautious during the downturn, postponing truck replacements while waiting for the economic conditions to change. The shift hasn’t happened yet, at least not to the extent that many had hoped, but this pent-up demand for trucks is set to uncoil. At the same time, trucks and engines made to comply with new emissions standards have had ample time to be road tested, removing another uncertainty that was causing fleet

managers to delay truck purchases. These factors are attracting a slew of new lenders and giving private freight haulers more options to finance fleet needs. Many of these new entrants may be biting off more than they can chew in the race to offer the best rates. There’s a big difference between partnering with a lender who understands your business and one who doesn’t. The former comes with financing options which make sense for your company and is interested in a long-term relationship; the latter may be more focused on the current volume gained from a deal, rather than thinking strategically about how changing economic

conditions could lead to different underwriting requirements in the future. Unexpected challenges may arise if new lenders fail to plan for economic changes in a specific industry. A fleet manager with an established line of credit could be turned down when trucks need replacing, or see unfavourable conditions in future agreements because of changing criteria. There are a few key points that any knowledgeable lender should present before providing your company with fresh financing: Loan vs. lease Your lender should take the time to understand how trucks will be used, how many miles you’re likely to travel, and then estimate how usage will affect operating costs over time. Oftentimes it can make more sense to lease a truck — turning it back in before operating and maintenance costs start to rise, or purchasing the vehicle at its residual value. More capital may be available through a leasing product than a loan because less of the equipment cost is amortized over the agreement’s term. While a truck loan

is fully financed over a typical five-year period, a leased vehicle with a 20% residual value would only require 80% financing over the same term. The result is lower payments. Finance-only lease vs. full-service lease Full-service leasing companies target organizations which do not have their own service divisions. This leaves private carriers to decide whether to finance the cost of the truck alone, or include allowances for maintenance and repairs. Any bundled options will lead to higher payments, so while the maintenance support may make sense for some organizations, it is not a perfect choice for everyone. Tax implications Various agencies are debating new tax laws that could affect how truck purchases are treated, and lenders with limited exposure to the trucking market may not be ready for what’s coming. In some cases, changes in areas such as off-balance-sheet lease tax treatments

could have significant ramifications on the decision to embrace a lease agreement or take out a loan. It’s important to get ahead of any pending change in tax laws and regulations. These are merely a few of the factors to consider as part of financing deliberations. If these issues don’t arise during initial discussions, be sure to raise them. While it’s important to tread carefully with financing needs, there’s no benefit to soft-pedalling discussions with a prospective lender. If everything goes right, this should be the beginning of a long and mutually beneficial relationship. pMC

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The Fraser Institute’s Measuring the Costs of the Canada-U.S. Border report says border delays cost the Canadian economy an astounding $19 billion a year. Photo: Canada Border Services Agency

DEAR

minister

Our wish list to improve the business of private trucking

Every private fleet manager is on a quest to control costs and improve productivity, but these are no small tasks. Enhancements must be made against a backdrop of everything from rising equipment prices to limited weights and dimensions. Fleets could use a helping hand. In this context, Private Motor Carrier magazine has assembled a wish list of seven government decisions that would improve the business of private trucking. Dear ministers, could you help us with the following? THE WISH: Be open to vehicle configurations that increase productivity — even if they are unique to your jurisdiction. THE REASON: Safe productivity gains can be maximized by focusing on local and regional highway networks. Steps to harmonize vehicle weights and dimensions should be applauded. We have seen gains made between Ontario and Quebec, through the Atlantic Agreement on Uniform Vehicle Weights and Dimensions, and in Canada’s New West Partnership. Each agreement plays a key role in supporting the seamless move of equipment and freight from one jurisdiction to the next. But when it comes to safely maximizing a truck’s productivity, some advances are best made at a local or regional level, reflecting available infrastructure and safety targets alike. Look no further than the successes of Ontario’s Long Combination Vehicle (LCV) program for a perfect example. Its permit system,

monitored speeds, driver requirements and limited routes have all helped to ensure an enviable safety record for twinned 53-foot trailers. By requiring permit holders to use Electronic Stability Controls, regulators have even found a way to promote the early adoption of a valuable technology. It is an approach that allows gains to be made quickly and effectively. THE WISH: Introduce tax relief or other subsidies for the early adopters of greener trucks. THE REASON: New trucks generate lower emissions than previous generations of equipment, but come at a steeper purchase price. In some cases they have also come with operating costs that are higher than expected. Truck emissions have been dramatically reduced in recent model years. Exhaust Gas Recirculation systems lower smogproducing NOx, Diesel Particulate Filters capture flakes that once blew into the air, and Diesel Exhaust Fluid transforms NOx into nitrogen and water. Regulators are now demanding lower Greenhouse Gas emissions, and every sign suggests there are tighter limits to come. Looking beyond diesel, selected fleets have even realized environmental gains by experimenting with everything from natural gas to hydraulic hybrids and electric package cars. There should be little surprise that private fleets are playing an everincreasing role in broader corporate sustainability programs.

While nobody can argue against the value of cleaner air, cash-strapped fleet operations are shouldering the entire cost for the new technology. This can delay purchases and the resulting environmental gains that are only realized when older trucks are replaced. A great way to support early adopters of this equipment, and help meet environmental mandates, would be to offer tax relief through accelerated depreciation schedules or other subsidies. THE WISH: Add more ACI-trained staff to border crossings during peak traffic periods. THE REASON: Confusion around the program designed to speed up low-risk shipments has actually led to other delays. The Fraser Institute’s Measuring the Costs of the Canada-U.S. Border report says border delays cost the Canadian economy an astounding $19 billion a year. The irony is that early adopters of the Advanced Commercial Information (ACI) program and its eManifests – designed to process low-risk shipments more efficiently – are reporting added delays of their own. It’s because many Border Service Officers have yet to be trained in the related procedures. There is a learning process for any new initiative, but challenges can be offset by ensuring that individual ports of entry have extra ACI-trained staff on hand during high-traffic periods.

December 2013

PMC • 23

thinking of ways to drive your business forward. That’s Ryder.

L E A S E & M A I N T E N A N C E • R E N TA L • D E D I C AT E D • S U P P LY C H A I N

www.ryder.com

Fleets are

councils by joining together behind Trucking HR Canada. Ongoing financial support for this group’s work will help to ensure every business voice is heard, and it will strengthen Canada’s long-term strategies to promote career opportunities.

ultimately responsible for recruiting and retention strategies, but they can still be encouraged to share best practices.

THE WISH: Update safety standards to allow for boat tails on trailers. THE REASON: The fuel-saving components have already proven their worth. Every fleet is looking for ways to offset fuel costs, and one of the most promising options appears to come in the form of “boat tails” that could improve the flow of air at the back of a trailer. Federal studies have shown that boat tails which extend between two and five feet from the barn doors can reduce aerodynamic drag between 7.6% and 11.8% at highway speeds. This can offer fuel savings of 4.7% to 7.3%. The devices are becoming more popular in the U.S., but in Canada we are still waiting for better definitions of a “rear extremity” which will allow domestic fleets to open boat tails of their own. THE WISH: Support industry efforts to tackle the driver shortage. THE REASON: Fleets are ultimately responsible for recruiting and retention strategies, but they can still be encouraged to share best practices. There is no escaping the reality of demographics. The average driver is now 46, which is older than employees found in other industries. This reflects an increase in retiring workers and a failure to attract a new generation of people behind the wheel. The Conference Board of Canada expects we will be short as many as 33,000 for-hire drivers by 2020, and private fleets will have needs on top of those. The challenge is not limited to drivers,

either. The industry also requires new managers, salespeople, mechanics and accountants, among other support staff. Long-term solutions will come from the fleets themselves. Those who hire the personnel will ultimately be responsible for individual recruiting and retention strategies. But federal and provincial governments can still play a role in supporting initiatives which bring competing industry voices together to share best practices in Human Resources. The Canadian trucking industry responded to recent funding cuts for sector

Mississauga: (905) 564-5404 Thunder Bay: (807) 577-5724 Winnipeg: (204) 632-8269 Brandon: (204) 571-5980

Regina: (306) 757-5606 Saskatoon: (306) 242-3465 Lloydminster: (780) 875-9115 Lethbridge: Equip. (403) 331-6315

THE WISH: Think beyond people-moving strategies when funding infrastructure. THE REASON: Canada’s infrastructure deficit slows freight as well as commuters. Canada’s infrastructure is crumbling faster than it is being replaced. The result is a $145-billion infrastructure deficit, according to the Canadian Centre for Policy Alternatives. Existing investments would need to increase $20-30 billion a year over the next decade just to catch up. Still, many recently approved projects seem to focus on the movement of commuters, suggesting that freight is often an afterthought.

Calgary: (403) 236-9712 Red Deer: (403) 343-1383 Edmonton: (780) 447-4422

Head Office 2525 Inkster Blvd Winnipeg MB

Langley: Equip. (604) 888-5522 Grande Prairie: (780) 402-9864

I P. (204) 632-8261 F. (204) 956-1786 (800) 282-8044 December 2013

PMC • 25

PRIVATE MOTOR TRUCK COUNCIL OF CANADA ASSOCIATION CANADIENNE DU CAMIONNAGE Dâ&#x20AC;&#x2122;ENTREPRISE

Join Us Now! The PMTC is the only Canadian association dedicated to the interests of private fleet operators.

We offer forums for fleet operators and suppliers to exchange views and resolve issues together, and we are at the forefront in representing your interests to government, protecting your rights and supporting the needs of private carriers. PMTC members are kept up-to-date with industry news through PMTCâ&#x20AC;&#x2122;s digital newsletter, have access to the Private Fleet Benchmarking Study and the Fleet Security Checklist. They receive member only pricing at PMTC events and on services such as Canada-wide driver licence verification by VerX Direct, and guidance on establishing alcohol and drug testing programs and participating in the group consortium by DriverCheck Inc.

Visit our Website at

www.pmtc.ca

Complete and fax this information request form to receive a no-obligation membership kit.

Please send me a free no-obligation membership kit

Mail to: The Private Motor Truck Council of Canada 1660 North Service Road East, Suite 115 Oakville, ON L6H 7G3 Or Fax to: 905-827-8212 Or on line at www.pmtc.ca

Name _________________________________Title________________________ Company__________________________________________________________ Address___________________________________________________________ City___________________Province/State______________PC/ZIP____________ Telephone (

)__________________________Fax(

)____________________

Email________________________________Website_______________________

Join Us Now! I am: a fleet operator a personnel agency an equipment lessor an industry supplier

q q q q

( Fill in the numbers) with _______tractors_______trailers______st. trucks_______others with _______drivers_______other leased personnel with _______units

RISE

te at

Everyone benefits from steps to reduce highway congestion, but investments which focus exclusively on the movement of goods — such as intermodal connections or enhanced highway interchanges — will make a difference of their own. Where should the money for this work come from? We would suggest larger shares of existing road taxes, fuel taxes, permit fees, licensing fees or vehiclerelated HST payments. THE WISH: Continue ongoing research to support evolving regulations. THE REASON: Challenges do not end when potential solutions emerge. Effective regulations are not set in stone. They evolve as new science emerges. Look no further than changing Hours of Service regulations or proposals to screen drivers for sleep apnea. Better science comes through an ongoing commitment to research around commercial vehicles and drivers. Canada

has already played leading roles in setting the standards which govern everything from rear under-ride guards to daytime running lights and North America’s cargo Better science comes through an ongoing commitment to securement research around commercial vehicles and drivers. rules. During the Private Motor shaping safety and environmental rules Truck Council’s recent annual conference, meanwhile, we learned about Canadian alike. And where else but Canada should we test how well natural gas vehicles run research which proved Low Rolling in cold conditions, or how we might Resistance (LRR) tires can deliver better prepare our highway network for future fuel economy without sacrificing winter convoys of automated “platooning” trucks traction or durability. Those are just a few which are led by a single driver? examples. Our industry and regulations continue Transport Canada’s EcoTechnology for to move forward. A federal commitment to Vehicles II (eTV) program is now testing related research will keep things moving vehicle technologies that will be on the pMC in the right direction. market in the next 10 to 15 years,

December 2013

PMC • 27

Volvo Trucks. Driving Success.

“Safety, fuel efficiency, driver ergonomics are key for us - and Volvo is delivering.” “We have 99 company owned tractors on the road – all Volvos and all are Volvo power. Safety has always been a priority. We’ve found Volvo I-Shift to be a great safety feature as well as being a big fuel saver for us. It not only makes efficient driving easy and consistent – we’re now averaging 8.5 mpg Imperial – it takes the stress out of driving so our drivers are more relaxed and alert. We also find Volvo’s VEC and VEST safety features play a big role in accident prevention and in limiting the severity of accidents. Our drivers like our units and love what we offer them – so they’re happy to stay with us and do their best for us. That’s good business” Scott Verspeeten, General Manager, Verspeeten Cartage

safety Praxair,

Tim Hortons

FIRST

and Hensall collect private fleet safety awards

he Private Motor Truck Council of Canada (PMTC) – Zurich Fleet Safety Awards recently recognized Praxair Canada, TDL Group (Tim Hortons) and Hensall District Cooperative for their respective commitments to safety. Praxair Canada operates a fleet of more than 100 power units, running more than 9 million kilometres per year while distributing industrial, medical and specialty gases. It is one of the largest PMTC members and has earned the award an astounding six times. The fleet’s written safety policy is regularly updated. And before hiring a new driver, Praxair conducts a thorough background check. New hires see five days of in-house training on company procedures, product handling and safety practices. They are then paired with a mentor for two weeks before being evaluated by a driver-supervisor and allowed to work on their own. Two safety observations and one ride-along with a supervisor are repeated every year after that. TDL Group, with its 98 tractors, runs 13 million kilometres per year and has a CVOR (Ontario Commercial Vehicle Operator’s Registration) violation rate of less than 10%. Its recruiting process involves an in-person interview, reference checks, a road test and physical assessment to ensure candidates can handle the physical demands of the job. Drivers are also put through a two-day orientation with a trainer, followed by four weeks with an over-the-road driver-trainer. A formal evaluation follows. The fleet also rewards drivers for safe operations and provides each driver with an annual performance review. Recognized as this year’s most improved fleet, Hensall District Cooperative has seen its CVOR violation rate plunge from 23% in 2006 to 6% in 2012. The fleet runs 60 tractors over 5.9 million kilometres per year. Prospective new hires are put through an extensive screening process and then taken on a one-hour road test. They receive a two-day orientation along with further training on product handling, defensive driving and cargo securement, and another two days of training with a mentor. “Along with Zurich, we at the PMTC congratulate all of the drivers and management involved with the award winners,” PMTC President Bruce Richards said. “Their collective efforts clearly pMC indicate the importance they place on road safety.”

Counterclockwise from the top, fleet managers including Mark Mostacci, formerly of TDL Group, David Marvin of Praxair Canada, and Mike Millian of Hensall District Cooperative, recently accepted awards for their respective fleets from Zurich’s Clive Thomson.

RESPECTED SERVICE

PROVEN PRODUCTS Trailer Suspension Systems Fifth Wheels Truck and Bus Suspensions Landing Gear Coupling Products Liftgates SAF-HOLLAND is a global leader in the design, manufacture and distribution of quality engineered components, systems and services to the commercial vehicle industry.

www.safholland.ca

December 2013

PMC • 29

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IN THE

From the headlines HIGHWAY 11 TWINNED — The last section of Highway 11’s twinned lanes between Saskatoon and Prince Albert, Saskatchewan have been opened to traffic. “Highway 11 is a vital link between Prince Albert, Saskatoon and Regina,” said MLA Darryle Hickie. “The second set of lanes will provide for increased capacity, reduced logistics costs and improved access for local industries.” MORE LEASE — Volvo Trucks has added two new Canadian leasing locations — Performance Equipment/Great Lakes Truck Leasing and Rental in Mississauga, Ontario; and Durham Truck and Equipment Sales and Service/Durham Leasing Systems in Ajax, Ontario. These locations are independent Volvo dealers which offer full-service leasing, short- and long-term rentals and other services. A COMPRESSED GAS, GAS, GAS — GE Oil and Gas has announced Chelsea Natural

Gas has purchased 20 of its “CNG in a Box” fuelling systems. The order marks the first entry of GE’s CNG fuelling solution into Canada. The system will be deployed in semi-private cardlocks accessible to fleets. “In Canada, where commercial fleets are smaller, it is hard for individual fleet operators to justify the expense of building their own natural gas refuelling facilities,” said Steve Carmichael, CEO of Chelsea Natural Gas. LOOK FOR THE SQUIRREL — If the object is to climb a tree, is it best to train a rabbit or to use a squirrel? This was Dr. Chet Robie’s tongue-in-cheek way of telling members of the Fleet Safety Council that training employees to meet company expectations will always be easier if you start with the right people. But before analyzing job candidates, fleets should look inward, the Wilfrid Laurier University professor said. The first step in any selection program starts by outlining a job’s tasks, duties and responsibilities.

news

QUALITY CLIMATE — Espar Climate Control Systems was recently honoured with the prestigious General Motors Supplier Quality of Excellence Award. Fleets with commercial vehicles will be familiar with the company’s fuel-fired heaters that operate as diesel or gasoline furnaces with sealed combustion chambers. Espar air heaters use forced air as a heating medium while Espar coolant heaters circulate engine coolant to transfer heat. ALTRUCK ALL READY — Altruck International Truck Centres officially opened the doors of its newest Burlington, Ontario facility on Oct. 24. Altruck International was born in 1977 and has grown into one of the largest International dealers in Southern Ontario.

PMTC YOUNG LEADERS GROUP Already a PMTC member? Looking for ways to engage your young staff into the industry? Consider having them join the PMTC Young Leaders Group today. Visit www.pmtc.ca under “Join the Council” to learn how they can receive all the benefits of PMTC membership.

December 2013

PMC • 31

www.PMTc.ca Your Voice. online. • • • • • •

THE PRIVATE TRUCK FLEET MAGAZINE

Read news and views from PMTC Register for industry events Download Private Motor Carrier magazine Link to important resources Members-only bulletins, presentations and resources And much, much more!

www.PMTc.ca

• NAVISTAR REMOTE DIAGNOSTICS PROGRAM COVERS ALL MAKES

WHAT’S

new

Navistar has unveiled a remote diagnostics program that works with a fleet’s existing telematics provider and covers all makes of vehicles. On Command Connection

• DETROIT CONNECT READY FOR MIXED FLEETS BY 2014

is currently being field tested to prepare for a January launch. Fleet owners or service managers can view their vehicles through a proprietary portal, where they can identify fault codes and determine the severity of a

Detroit Diesel is making its Detroit Connect telematics

situation. The program can direct the operator to the

program available to mixed fleets beginning early next

nearest dealer location -- including competing dealerships

year. This means fleets will be able to use Detroit Connect

if the vehicle is not an International. So far, the system

Visibility fleet software and its on-board tablet with any make or model of truck. The service

has been approved for use with Omnitracs, PeopleNet,

was initially announced for only Freightliner and Western Star trucks. Visibility fleet software

Teletrac, GeoTab, XRS Corp., CyntrX and Pedigree

monitors and delivers real-time data on the entire fleet to track the status of one or all trucks.

technologies, which provide telematics services to the

The On-Board Tablet is loaded with trucking-specific apps that provide hours-of-service

vast majority of International truck customers.

monitoring, two-way messaging, navigation and trip inspections.

•DETROIT DIESEL

•NAVISTAR

• CUMMINS LAUNCHING 5-LITRE V8 DIESEL

weight and improve efficiency. The engine features a Bosch high-pressure,

Cummins is launching a five-litre V8 diesel engine for P&D applications

common-rail fuel system and optimum in-cylinder combustion, the company

and other light- and medium-duty trucks. The ISV5.0 will be assembled at

said. There will be four horsepower ratings (200, 220, 250 and 275)

Cummins’ Columbus engine plant, which has received a makeover to

available with torques up to 560 lb-ft. The engine uses ceramic glow plugs

accommodate production beginning next year. The ISV5.0 represents the

to reduce start time and limit electrical current draw in cold weather.

first Cummins engine to use a compacted graphite iron block, which

Production of the new engine will begin in the fourth quarter of 2014.

•CUMMINS

reduces weight and engine noise. Aluminum components shed more

Transportise

[trans-pore-teez] Definition: The financing expertise of CIT in the transportation sector. As one of Canada’s leading providers of equipment financing, CIT works with companies and owner/ operators across a broad range of industries, specializing in transportation and construction. We offer loans and leases, sale leaseback, fixed or floating rate options, CDN and USD currencies, portfolio acquisitions and dealer programs. Our unmatched expertise and industry knowledge gives us an edge in creating customized financing solutions that help you stay one step ahead of the competition. Visit www.cit.ca or call 877-590-7356

TRUCKS/TRACTORS • TRAILERS • VOCATIONAL • NEW AND USED

December 2013

PMC • 33

• MORE AUTOMATION FOR PROSTAR AND TRANSTAR

WHAT’S

new

Navistar has announced a complete line of automated and automatic transmissions for the International ProStar and TranStar. Among the offerings are the Cummins Eaton Smart Advantage, the UltraShift Plus LSE and the Allison TC10. The Cummins/Eaton collaboration features a 10-speed automated manual transmission mated to the Cummins ISX15 engine. Cummins and Eaton say fuel economy

• VOLVO XE PACKAGE IMPROVES 11-LITRE ENGINE EFFICIENCY

improvements of 3-6% can be achieved. Also available is the UltraShift Plus LSE, which Eaton designed specifically for Navistar. The new 16-speed direct drive automated manual maximizes fuel efficiency in linehaul applications, with fuel savings of up to 6% possible, according to Eaton. The Allison TC10 is the first fully automatic

Volvo Trucks has announced the availability of an XE

transmission for the Class 8 market, and is available on International ProStar and TranStar

(exceptional efficiency) package for its 11-litre engine.

trucks with MaxxForce 13 engines. Allison says its transmission can save fuel to the tune of

The XE11 will be available on Volvo VNM and VNL

5%. International trucks with the TC10 will be available for delivery in early 2014.

models, rated at up to 80,000 pounds. The engine will

•NAVISTAR

be aimed at LTL, distribution, bulk hauling and other regional applications, and has the potential to reduce fuel needs by as much as 3%, Volvo says. The XE11 package includes a Volvo D11 engine with 405 hp and

• KENWORTH T880 NOW OFFICIALLY AVAILABLE

1,550 lb-ft of torque; a Volvo I-Shift overdrive transmis-

Kenworth has announced its newest truck, the vocational T880, is now available for order.

sion with a ratio of 0.78:1; axle ratios of 2.64 to 2.80;

The truck is aimed at dump, mixer, refuse and heavy-haul

and proprietary software. The XE powertrain package

applications, and comes standard with the Paccar MX-13

lowers engine rpm at a given vehicle speed by about

engine rated up to 500 hp and 1,850 lb-ft of torque. “The

200 rpm. Fuel efficiency improves by about 1.5% for

Kenworth T880 offers truck operators and fleets a very

every 100 rpm drop in cruise speed, Volvo adds.

comfortable work environment for drivers, lower operating cost and enhanced productivity,” said Preston Feight, Kenworth

•VOLVO TRUCKS

assistant general manager for sales and marketing.

•KENWORTH

Solution to

The

Recruiting and Staffing

Montreal, QC Toronto, ON Vancouver, BC Ottawa, ON

1-888-4Unique www.uniquepersonnel.com

34 • PMC

December 2013

WHAT’S

new

• ECOPIA TIRES DESIGNED FOR REGIONAL AND P&D FLEETS Bridgestone Commercial Solutions has rolled out a new addition to its

Ecopia product line. The R268 premium all-position radial is designed for regional and P&D fleets, and promises to stand up to high-scrub environments while delivering fuel efficiency. Additional features include a wave channel that reduces strain on the bottom grooves, optimized distribution of ribs for added stiffness, and a “NanoPro-Tech” compound to improve rolling resistance. The R268 Ecopia is available in 295/75R22.5. Additional sizes will launch in the coming months.

•BRIDGESTONE

BALANCER B-150 AUTOMATIC TRAILER AXLE CONTROL SYSTEM

• auto raise / auto lower • government approved • no driver errors • increase tire life • better fuel economy • proven technology • reliable and dependable • easy installation

• cutting edge innovation • low maintenance • durable performance • lightest weight • advantageous pricing • after sale support • downloadable manuals • technical assistance

Every fleet manager is relied upon to specify equipment that provides the longest and most economical life cycle. Keep the best rubber on the road when you need it to be there. Increase the tread life of your tires. Lower your "per mile" fuel costs. Improve your bottom line. Have confidence and peace of mind that you are running the best trailer axle control system available.

www.ridewellcorp.com 36 • PMC

December 2013

index PMTC is pleased to recognize those companies marked as valued members 3M 30 www.3M.com Ancra 27 www.ancra.com CiT Group 33 www.cit.ca Cummins Engines 4 www.cumminsengines.com Drive Products 35 www.driveproducts.com Espar 2 www.espar.com Fort Garry Industries 25 www.fgiltd.com GTA Trailer Rentals 34 www.gtatrailer.com Hino 14 www.hinocanada.com Howes Lubricator Products 18 www.howeslube.com Kenworth 10 www.kenworth.com Huron Services 12 www.hurongroup.com Mack Trucks 22 www.macktrucks.com Maxim Truck and Trailer 11,13 www.maximinc.com PeopleNet 20 www.peoplenetonline.ca Peterbilt Canada 40 www.peterbilt.com PMTC.ca 32 www.pmtc.ca PMTC Membership 26 www.pmtc.ca PMTC Young Leaders 31 www.pmtc.ca Ridewell Corp. 36 www.ridewellcorp.com Ryder Canada 24 www.canada.ryder.com SAF-Holland Canada 29 www.safholland.ca Securitrim 37 www.securitrim.ca Shaw Tracking 39 www.shawtracking.ca Tiger Tool International 15 www.tigertool.com TMW Systems 6 www.tmwsystems.com Unique Personnel 34 www.uniquepersonnel.com Volvo 28 www.volvotruckscanada.com

STATS AND

facts

Lease is the word

Statistics examining trends in vehicle leasing The Canadian Private Fleet Practices Benchmark Study, compiled by Glacier’s Business Information Group and the Private Motor Truck Council of Canada, discovered several trends in equipment purchasing and leasing. More than half of the surveyed fleets owned their tractors and trailers. Smaller fleets were also more likely than their larger counterparts to own the equipment.

A snapshot of Canada’s truck rental industry

Revenue:

billion

Source: Canadian Private Fleet Practices Benchmark Study

TRACTORS Lease

10 or less

11 to 49

50+

Annual growth (2008-2013):

Own Mix Not stated

Employees:

TRAILERS Lease Own Mix

Businesses:

Not stated

Source: IBISWorld

IBISWorld expects that the majority of downstream trucking firms and fleet operators will lease their vehicles from industry operators as they seek more predictability and flexibility in their cost structures.

38 • PMC

December 2013

”